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Mangalam Cement Ltd. Stock Analysis

Small Cap
Evaluated by 795 users | BSE: 502157 | NSE: MANGLMCEM |
Cement & Construction Materials
Mangalam Cement Limited was promoted in the year 1978 by the famed house of Shri B KBirla, the most eminent and illustrious industrialist of the country. It is a professionally managed and well established cement manufacturing company enjoying the confidence of consumers because of its...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.78%13.94%14.24%4.52%5.23%0.97%7.1%4.53%2.36%10.84%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4966317066979228429051,0801,2001,228
Y-o-Y Gr. Rt.-27.1%11.9%-1.2%32.2%-8.7%7.5%19.3%11.1%2.4%
Adjusted EPS (Rs.) 14.1821.1429.0111.097.33-8.7711.462.74-4.8827.69
Y-o-Y Gr. Rt.-49.1%37.2%-61.8%-33.9%-219.7%NA-76.1%-278.1%NA
Book Value per Share (Rs.) 145.97160.08182.6188.13192.12177.29189.56192.92188.61215.75
Adjusted Net Profit 37.856.477.529.619.6-23.430.67.3-1373.9
Net Op. Cash Flow (Rs. Cr.) -2.786.81066348.374.516385.984.4216
Debt to Cash Flow from Ops -4.9801.985.847.95.742.394.336.132.7
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Mangalam Cement Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.6%5.9%10.7%2.4%
Adjusted EPS 7.7%30.5%34.2%NA
Book Value per Share 4.42.44.414.4
Share Price 6.3% -4% -18.4% -38.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 9.6813.6416.755.933.82-4.736.251.43-2.5613.7
Operating Profit Margin (%) 12.7816.518.5289.815.33137.634.816.24
Net Profit Margin (%) 7.638.9410.974.252.12-2.783.380.68-1.096.02
Debt to Equity 0.0300.430.730.740.90.770.721.031.01
Working Capital Days 156141143154127137111102122148
Cash Conversion Cycle 5712183-7-7-4-6-13
Entity Percentage Holding
Promoters 22.08%
Institutions 7.52%
Non-Institutions 70.40%
Pledged *18.1511.7718.1518.1212.980.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Mangalam Cement's performance infers:

Mangalam Cement earnings have grown by 30.5%, whereas share price has depreciated -4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Mangalam Cement share prices over the last 10 years. Here is what we found out:

Mangalam Cement share price has depreciated 1.1% annually over the past ten years.

Mangalam Cement Limited was promoted in the year 1978 by the famed house of Shri B KBirla, the most eminent and illustrious industrialist of the country.

It is a professionally managed and well established cement manufacturing company enjoying the confidence of consumers because of its superior quality product and excellent customer service.

The company has recently commissioned its state-of-the-art new cement plant with German technology for producing 7 lakh tonnes per annum at its

Mangalam Cement Limited was promoted in the year 1978 by the famed house of Shri B KBirla, the most eminent and illustrious industrialist of the country.

It is a professionally managed and well established cement manufacturing company enjoying the confidence of consumers because of its superior quality product and excellent customer service.

The company has recently commissioned its state-of-the-art new cement plant with German technology for producing 7 lakh tonnes per annum at its existing site at Morak, Distt. Kota in Rajasthan under the name of Neer Shree Cement.

In 1996, a major power failure led to the stoppage of production in the Mangalam Cement kiln for the entire month of December and the company decided to set up a pre-calcinator that year. The company was reduced to the status of a sick company in 2000 and its net worth declined, but in 2004 Mangalam Cement was facilitated by the one-time settlement struck between Mangalam Cement and its financiers and it was relieved of a sum of Rs.119 crore.

In 1992, the B.K. Birla Group considered plans to set up a new manufacturing unit after Mangalam Cement and decided to name it as Neer Shree Cement, and this plant was supposed to incorporate all the latest technologies available in Germany. The project required a capital investment of Rs153 crore and the plant ultimately began its production in the year 1994 and was recognized with ISO-9002 Certification in 1996-97.

As an integral part of environment protection drive, it employs latest pollution control techniques to minimize pollution and make the environment eco-friendly. It has a well-designed environmental policy to achieve the objective of environmental commitment by management.

In 2010 Mangalam Cement okayed merger of sister firm - Mangalam Timber Products with itself.

Product range of the company includes:

  • Birla Uttam Cement- 43 Grade
  • Birla Uttam Cement- 53 Grade
  • Birla Uttam Cement- Portland pozzolana cement (PPC)

Awards/ Achievements

  • The products produced by the company are as per the BIS Specification.
  • Implementation of ISO 14001 is currently underway at its plants.
  • Awards Won during Mines Environment and Mineral Conservation Week 2005-06 include third position for Over all Performance and Air Pollution Control, second position in Reclamation, Rehabilitation & Restoration of Land.
  • Awards Won during the Mines Safety Week 2005 include first prize for Over all Performance, Heavy Earth Moving Machinery and maintenance, Electrical Installation and Mine Lighting, Opencast Working  Places and Supervision and second prize for Welfare Amenities and Protective Equipments,  Publicity Propaganda and Housing Keeping.
  • Awards Won during Mines Environment and Mineral Conservation Week 2004-05, Ajmer Region involves second prize for overall performance and first prize for Reclamation, Rehabilitation & Restoration of Land, Water Pollution Control.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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